Gap Inc. Announces Global Expansion Plans

Gap Brand Set to Launch in Slovenia and Austria

July 21, 2014 02:01 PM Eastern Daylight Time

SAN FRANCISCO--(BUSINESS WIRE)--Continuing to deliver on its global growth plans, Gap Inc. (NYSE:GPS)
today announced that it will introduce the Gap brand to Slovenia and
Austria through agreements with new and existing franchise partners.
Magistrat International, a new partner, has been selected for the launch
of Slovenia and Gottex, which currently manages the Gap franchise
business in Israel and Hungary, will launch Austria.

“We are thrilled to be opening in Slovenia and Austria and can’t wait to
meet customers when we open our doors for the first time in each capital
city. One of the best things about opening in a new country is the
incredible welcome that Gap receives and the buzz that generates for our
teams and our customers alike,” said Ismail Seyis, Vice President of Gap
Franchise.

“Gap is known all over the world and we have grown our store presence
significantly in recent years to help bring our casual style to more and
more customers. We launched into five new markets last year; Hungary,
Paraguay Peru, Brazil and Costa Rica, and with the opening of stores in
Slovenia and Austria we now bring our iconic brand to customers through
stores in almost 50 countries,” said Gap Brand President, Steve Sunnucks.

Slovenia

Gap has signed a new agreement with Magistrat International to open
three stores for the first time later this year in the capital city of
Ljubljana. City Park, Slovenia’s largest shopping center, will be the
location for the first two free-standing stores; one for Adult and one
for Kids and Baby. The Emporium department store will feature the full
collection of Mens, Womens, Kids and Baby. All locations are scheduled
to open by September this year showcasing the Fall 2014 collection.

Austria

Gap will also open its first store in Vienna, Austria this October
through an existing relationship with Gottex Brands, which is a part of
the Trimera Group. The free-standing Gap store will be located at the
Donauzentrum Mall and will provide a full product assortment and branded
store experience to the local consumers. As a great international city
with a high tourism rate, Vienna offers an exciting platform for Gap to
bring its casual American style and store experience to local and
visiting customers alike.

Gap Inc. has expanded the international reach of its brands since
launching its first franchise operated store in 2006. Over the last
eight years, Gap Inc. has grown its store base and currently has over
300 franchise stores across the world.

Forward-Looking Statements

This press release contains forward-looking statements within the “safe
harbor” provisions of the Private Securities Litigation Reform Act of
1995. All statements other than those that are purely historical are
forward-looking statements. Words such as “expect,” “anticipate,”
“believe,” “estimate,” “intend,” “plan,” “project,” and similar
expressions also identify forward-looking statements. Forward-looking
statements include statements regarding the following:

Expected franchise store openings and timing.

Global expansion strategies.

Because these forward-looking statements involve risks and
uncertainties, there are important factors that could cause the
company’s actual results to differ materially from those in the
forward-looking statements.

These factors include, without limitation, the following:

the risk that changes in general economic conditions or consumer
spending patterns could adversely impact the company’s results of
operations;

the highly competitive nature of the company’s business
internationally;

the risk that the company or its franchisees will be unsuccessful in
gauging apparel trends and changing consumer preferences;

the risk that the company’s franchisees will be unable to successfully
open, operate, and grow their franchised stores in a manner consistent
with the company’s requirements regarding its brand identities and
customer experience standards;

the risk that the company’s franchisees will be unsuccessful in
identifying, negotiating, and securing new store locations and
renewing, modifying or terminating leases for existing store locations
effectively;

the risk that natural disasters, public health crises, political
crises, or other catastrophic events could adversely affect the
company’s operations and financial results;

the risk that acts or omissions by the company’s third-party vendors,
including a failure to comply with the company’s code of vendor
conduct, could have a negative impact on its reputation or operations;

the risk that the company will not be successful in defending various
proceedings, lawsuits, disputes, claims, and audits; and

the risk that changes in the regulatory or administrative landscape
could adversely affect the company’s financial condition, strategies,
and results of operations.

Additional information regarding factors that could cause results to
differ can be found in the company’s Annual Report on Form 10-K for the
fiscal year ended February 1, 2014, as well as the company’s subsequent
filings with the Securities and Exchange Commission.

These forward-looking statements are based on information as of July 21,
2014. The company assumes no obligation to publicly update or revise its
forward-looking statements even if experience or future changes make it
clear that any projected results expressed or implied therein will not
be realized.

About Gap Inc.

Gap Inc. is a leading global retailer offering clothing, accessories,
and personal care products for men, women, children, and babies under
the Gap, Banana Republic, Old Navy, Piperlime, Athleta, and Intermix
brands. Fiscal year 2013 net sales were $16.1 billion. Gap Inc. products
are available for purchase in more than 90 countries worldwide through
about 3,100 company-operated stores, over 350 franchise stores, and
e-commerce sites. For more information, please visit www.gapinc.com.